Advantages and Disadvantages of Doing e-commerce

Advantages and disadvantages of doing e-commerce

Many people today are starting to pay attention to their privacy. They are beginning to realize that any information they post on the internet is very crucial and can be used against them. It is therefore very hard to imagine any business today based on insecure commerce environment (. Businesses that use this form of environment have an advantage in that their customers have a lot of ease in using these services. Their websites do not require and contain security features like password protection, encryption, or firewalls.

This poses a lot of danger because anybody can access this websites. These includes criminals, and other cooperates that may not have genuine intentions. Continuous posting of personal information by the users puts the users at risk of being attacked by these criminals. This system therefore has a major security problem. This makes the company have many problems especially with reputation. And may finally lead to its downfall due to the many frauds committed against its consumers.

In transactions with insecure e -commerce, business on line is synonymous with money transactions. The consumer that comes on line is ready to spend some money, they use their credit cards to settle the e shop and receive the product they need in the shortest time possible. The process of payment is easy but it involves very many processes. This type of environment also allows the existence of third party transactions. This is to mean that the clients can settle their bills via diners and electronic checks. This demand the third party transaction feature existence. Visa and MasterCard are the main modes of payment. However there are different terms that apply in the case f every card.

The owner of the e-shop remains with the part of his transaction that states the total amount that was submitted to them they can therefore be able to balance their accounts by referring to the total sales. The fees that are charged during transactions due to the cards used to settle payments. The costs are mostly referred to as credit card costs, they are mostly dependent on the type of credit cards used. The client is the one who bears this cost. From the above illustrations it is clear that the e-shop owner in this environment has a very easy time and makes good profits as his business expands rapidly.

A secure e-commerce environment is the opposite of an insecure environment. Due to the rise in awareness of privacy in among Americans, people prefer secure e commerce environment. This is because it is secures its websites by means of encryption, and protects their data using firewalls. The disadvantages of this environment lay in the complexity of this site. Despite the increased security in this environment, users feel that the requirement demands take things too far. For example the frequent password changes and the password strength requirements are too demanding requirements. The company also experiences the pressure that comes with a completely secure environment. This is because it brings about increased personnel costs in form of network and server engineers.

The business transactions carried out even in secure e commerce are very available. In the bid to provide secure transactions carried out on their websites the service ends up being less available. Hence the service providers should seek to make it available despite the tight security around it. It is therefore important for the providers to set their priorities before setting up the business. The secure environment can be expensive and demanding, however t is very rewarding in the long run. Unlike the open insecure whose chances of long time survival is slim.